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Jean-Pierre Lacroix is helping drive greater transformational value. He is the President of SLD, a global brand consulting firm focused on the financial services industry and a founding member of the HUD Collective. The group represents industry-leading experts and brands dedicated to putting humans at the center of digital transformation. Their combined expertise provides a human-centric and agile approach that ensures technology helps teams deliver world-class customer experiences.
The H2D Collective facilitates harmony between humans and technology by offering a wide range of creative services to help brands throughout the entire digital transformation process. They have curated a series of podcasts to optimize digital and physical transformation for financial institutions. If you find these podcasts valuable, please share them with your network to help drive greater transformational value.
Jean-Pierre Lacroix is the President of SLD, a brand consulting firm specializing in the financial services industry. Today, on H2D Talk, he interviews Paul Provenzano, Vice President of Market Development at Ebankit. Paul supports financial institutions in deploying innovative digital strategies and their execution in North America.
Jean-Pierre Lacroix:
Good day, my name is Jean Pierre Lacroix, and I’m the President of SLD, a brand consulting firm specializing in the financial services industry. Today on H2D Talk, I have Paul Provenzano. He is the Vice President of Market Development at Ebankit, and Paul supports financial institutions in deploying innovative digital strategies and executing them in North America.
Paul Provenzano:
Thank you, it’s great to be here.
Jean-Pierre Lacroix:
I’m excited to listen and understand more about what Ebankit does and the future of digital transformation. Do you think AI will impact the digital transformation of financial institutions?
Paul Provenzano:
Yes, it’s a really good question. There is a lot of noise and potential distractions surrounding AI. Financial institutions focus on serving their customers effectively and growing their business. AI will certainly play a part in that. We weren’t talking about AI or AI strategies a year ago, but now it’s becoming important. The influence of AI will depend on factors like the infrastructure within a financial institution, data integration, and their ability to connect and communicate with AI. But there’s a place for AI to bring additional value to customers of financial institutions.
Jean-Pierre Lacroix:
When you consider AI and the customer’s digital journey, what areas do you think AI will impact financial institutions and customers? What are the areas of benefit?
Paul Provenzano:
We are already seeing conversational AI capabilities, such as chatbots, becoming more sophisticated. One impact area will be smooth transitions from conversational AI tools to human support. If customers feel they’re not getting the support or answers they need, they should be easily transitioned to another channel. Financial institutions that can do this effectively will win customer loyalty. Additionally, there are interesting opportunities to leverage AI in predictive ways. For example, providing predictive spending analysis based on historical spending patterns to help customers budget and plan. AI could also determine creditworthiness based on factors beyond traditional credit scores, opening up new possibilities for extending customer services and value.
Jean-Pierre Lacroix:
That’s great. When we look at the development of digital transformation in the banking industry, we see that banks are among the most advanced in integrating digital transformation. Are there areas of improvement banks are undertaking to eliminate friction points and enhance the customer experience?
Paul Provenzano:
One area with many opportunities is open banking. While Europe and the UK have been more proactive in adopting open banking, the US has been slower. However, there are indications that regulatory guidance around open banking may be forthcoming. Open banking gives consumers ownership of their data and the ability to decide who gets access to their financial information. Financial institutions must be prepared and have the technology to facilitate this. There is also interest in integrating niche service providers and enabling easier integration with tax-related services. For example, gamification elements can be added to digital banking platforms to enrich customer experience. These innovations and integrations will continue transforming how customers interact with financial institutions, leading to loyalty and new business opportunities.
When considering the regulatory environment and innovation, there are certain feature functions that we are starting to see globally, with some interest in the US, particularly regarding open banking trends. This includes integrating more easily in terms of taxation and niche service providers to provide a more enriched customer experience. As a digital banking platform provider for the financial service industry, we are always on the lookout for organizations and companies that can bring value to our platform and the financial institutions and their customers. One example we’ve come across is a fintech company that incorporates gamification. For instance, if customers set savings goals or work towards financial targets, they can track their progress and receive rewards such as an interest rate reduction on loans. The gamification element adds value and brings an interesting digital experience that banking customers wouldn’t normally have. This is just one of many examples where we anticipate seeing more of these niche syntax and a growing desire to integrate third-party applications into digital experiences, ultimately transforming how customers interact and fostering loyalty that can lead to new business opportunities.
Jean-Pierre Lacroix:
That’s great to hear. In our analysis of the global banking industry, Europe is somewhat ahead of the US regarding digital adoption and integration. Apart from open banking, are there other areas or gaps you feel the US needs to address to remain globally competitive?
Paul Provenzano:
Certainly, one area that comes to mind is the perspective or line of sight. When speaking with financial institutions about high-level customer engagement, there tends to be a narrow focus solely within the financial service industry. However, I believe it’s important to look beyond that and acknowledge that our experiences with apps and other applications from various sectors like retail, travel, and technology shape our expectations of what a digital experience should be in financial services. Europe has embraced this broader perspective and focused on creating user experiences that are delightful and engaging, aiming to build customer loyalty. The US market presents an opportunity for financial institutions to take a step back, look outside the financial service world, and identify elements they can incorporate into their systems and solutions to create more delightful and engaging experiences.
Jean-Pierre Lacroix:
Indeed, it’s fascinating how learned behaviour from other sectors can influence consumer expectations in financial services. Besides financial resources, what might be holding organizations back from delivering a more pleasing and efficient digital experience?
Paul Provenzano:
That’s a great question. There are a few factors to consider. Firstly, technology itself can be a limitation. In the US, numerous legacy providers with outdated platforms need more scalability and easy customization. This technology deficiency poses a significant risk and hinders digital transformation across the industry.
Additionally, cultural factors play a role. Embracing digital transformation requires a cultural mindset shift throughout the organization and leadership of financial institutions. It’s about more than just the technology but also how the organization serves and supports customers across various channels. This cultural divide can impede progress in digital transformation. These are key aspects to consider in delivering a more pleasing and efficient digital experience.
Jean-Pierre Lacroix:
Well, it’s interesting that you mentioned these points because our study, Physi- digital in the banking industry last year, highlighted the lack of resources and too many conflicting priorities as the two biggest challenges for financial institutions in deploying and accelerating digital transformation. So, we’ve really touched upon those issues here. Different institutions are at various stages when we consider the deployment of digital transformation. Some are well-seasoned and moving towards the next evolution through integrating APIs, providing a comprehensive view of customers’ experiences throughout their financial journey. This includes tracking their budgeting, purchases, travel, and holidays and integrating it into their financial dashboard. On the other hand, some institutions are playing catch-up as they transition to online and mobile platforms, aiming to provide a seamless experience. However, as you mentioned, legacy systems challenge banks to achieve integration and a unified view of the customer.
What would those be if we focus on three common pitfalls that financial service organizations should avoid during their digital transformation journey?
Paul Provenzano:
That’s an excellent question, and there are probably more than just three pitfalls to consider. From a digital transformation standpoint, it’s crucial not to be short-sighted. Organizations should strive to articulate a vision that extends beyond the immediate future, looking ahead 24 to 36 months. Having all the answers at once is unnecessary, but taking a long-term view is important. Another potential pitfall is when financial institutions solely focus on solving immediate problems without considering the limitations of the technology they implement. They should think about the technology’s scalability and future growth potential to avoid hindrances down the road. This is closely related to whether technology drives strategy or strategy drives technology. In the financial service industry, there has often been a tendency for technology to dictate the strategy. However, given the rapid pace of technological change and evolving customer needs, financial institutions must define their strategy first and then identify the technology that aligns with and supports that strategy. Lastly, financial institutions must look beyond their industry and gain inspiration from other retail, travel, hospitality, or design sectors. Too often, they become siloed and solely focused on the financial service sector, missing out on innovative customer experiences that could be adapted to the banking industry.
Jean-Pierre Lacroix:
Those are excellent points and valuable insights into the pitfalls to avoid during digital transformation. Paul, I sincerely appreciate your time and expertise. I am excited to meet you at the BCX conference in September. Best of luck with the expansion of the bank in the US market.
Paul Provenzano:
Thank you, Jean-Pierre. It’s been a pleasure to have this conversation with you. I wish you a productive day as well.